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Trump administration: Court can’t suspend pipeline decision (UPDATE)

FILE - In this Nov. 3, 2015 file photo, the Keystone Steele City pumping station, into which the planned Keystone XL pipeline is to connect to, is seen in Steele City, Neb. The Trump administration says a federal judge has no authority to second-guess a presidential permit for the pipeline. (AP Photo/Nati Harnik, File)

The Keystone Steele City pumping station, which the planned Keystone XL pipeline is to connect to, as seen in Steele City, Neb, in 2015. The Trump administration says a federal judge has no authority to second-guess a presidential permit granted to the pipeline. (AP Photo/Nati Harnik, File)

By MATTHEW BROWN
Associated Press

BILLINGS, Mont. (AP) — Attorneys for the Trump administration said a federal judge has no authority to second-guess a presidential permit for the Keystone XL oil pipeline as they seek to stop a lawsuit that would block the project.

Justice Department attorneys are due in U.S. District Court in Montana on Wednesday to defend the administration’s decision in March to approve the 1,179-mile pipeline — a lightning rod in the debate over what to do about climate change.

The TransCanada proposal would transport Canadian crude oil through Montana and South Dakota to Nebraska, where it would connect with an existing system of lines to carry oil to Gulf Coast refineries.

The Obama administration rejected the project before the proposal was revived in March by President Donald Trump, who said it would create jobs and lead to greater energy independence.

Conservation groups and Native American organizations that sued over the project argue that an environmental review completed in 2014 was inadequate. They’ve asked U.S. District Judge Brian Morris to revoke its permit.

Government attorneys said in their motion to throw out the case that Morris can’t interfere because the Constitution gives Trump authority over matters of foreign affairs and national security.

“The remedy that plaintiffs seek — an injunction against the presidential permit — is not available because such an order would impermissibly infringe on the president’s authority,” Justice Department attorney Bridget McNeil wrote.

The project’s economics have shifted considerably since the pipeline was proposed in 2008. Low oil prices and the high cost of extracting Canadian crude from Alberta’s oil sands are now casting doubt on whether it would be profitable.

Opponents say those market changes undercut arguments from Keystone supporters who contend that oil-sands crude would get to consumers by another means if the pipeline was not built.

The opponents said the current market conditions should have been weighed by the State Department before it issued the permit.

“In a low oil market world, adding close to a million barrels a day of capacity out of the tar sands is a lifeline for that industry. You can’t say it’s going to find its way to market whether this pipeline is built,” said Doug Hayes, a lawyer at the Sierra Club, one of the plaintiffs in the lawsuits.

A TransCanada executive in August raised doubts about Keystone’s prospects and said the Calgary-based company would decide later this year about whether to start construction on the project.
Matthew John, a company spokesman, said on Tuesday that the project was in the national interests of the U.S. and Canada. He declined to talk about the lawsuits or the pipeline’s economic prospects.

Keystone has faced heated opposition from landowners whose property would be crossed by the line.

The Nebraska Public Service Commission must decide by Nov. 23 whether it will give the project its approval. Regulators in South Dakota and Montana have already approved the project.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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